a. Take the customer's moneyb. Deny the claim when the insured event actually happensc. Make the customer sue on his claim when the insured event happensc. At which point the insurance industry screams "frivolous law suits" and "tort reform" and "avaricious trial lawyers."

PART 2 OF THE MODEL

a. Privatize profitb. Socialize Risk (i.e., run to the government for a bail out)

This two part business model has been played out in Flood Insurance, Earthquake Insurance, Price-Anderson Nuclear Reactor Insurance, among others.

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